First published 30 Oct 2026, 5:09pm
Owning a home has always been part of the great Australian story, but the way we get there is changing.
Rising land prices, tight availability in established suburbs and shifting household needs are pushing more Melburnians to rethink what their dream home actually looks like.
In response to a trend towards smaller blocks and a rise of medium-density living, modern home designs have evolved and townhomes have been increasingly popular when it comes to the ideal property.
As buyers are increasingly looking for the perfect balance of privacy, space, design and lower-maintenance living, more are turning towards townhomes.
A form of medium-density housing, townhomes sit between an apartment and a detached house, offering the best of both of these worlds.
Notably, they sit at a more affordable price-point than the traditional quarter-acre block, a key factor that is reshaping the Australian dream.
According to Caroline Walters, Head of Marketing at Nostra Homes , the shift has been dramatic.
“Looking at the market at the moment, there’s been a huge increase in townhomes in Victoria. she says.
“But that change isn’t just about price – it’s about buyers realising they don’t need to sacrifice on what they want and they can get it all in these new types of homes.”
“It’s almost like the new Australian dream is a townhome.”
While townhomes have boomed in popularity, Ms Walters cautions that not all are created equal.
“When townhomes are designed well, people are really surprised with how much space and how much natural light they offer,” she explains.
“A lot of designs actually come with a fairly big courtyard, like our Lipari 20 sqm as an example.”
Townhomes are becoming an appealing option for buyers looking to balance space with low-maintenance design.
Nostra Homes, which is celebrating 20 years of building homes , has zeroed in its focus on townhomes as the market has evolved, moving from a previous 50/50 split between detached houses and townhomes.
Ms Walters notes the 20 years’ experience has delivered valuable insights on what makes a home more appealing, regardless of size.
“The design is really important to get right, and that’s going to change the perception of what a townhome is and that it is comparable to a standalone house,” Ms Walters says.
“Some people still think it’s small and pokey and dark, but it really doesn’t have to be that way.”
She says layouts are now smarter, with features like skylights ensuring homes remain liveable and light-filled.
“I think we do it well because of our focus on architectural design. Nostra’s tagline is ‘built for living’ – if we’re not proud to live in our homes, then no one should.”
She adds that Nostra Homes has also built its reputation on what Ms Walters calls “quality inclusions”, with homes featuring materials and fittings that many builders would treat as costly upgrades.
For buyers who want to go further, there’s also a wide range of affordable upgrades to choose from.
“This is the part a lot of our customers really enjoy, because it’s where they can make the house their own.”
To top it off, there’s the reliability of a Nostra Homes contract.
“With the fixed-price build contracts, there’s no surprises for our customers. The build is locked in from the day that you sign,” Ms Walters explains.
Nostra Homes has 20 years of experience in crafting the townhomes modern buyer are looking for.
Beyond individual homes, medium-density housing plays a broader role in shaping community life and a key role in the wider effort to boost housing supply in Victoria.
Part of the state government’s support to make Victoria the “ townhouse capital ” includes implementing faster approval pathways specifically for townhouses, such as Victoria’s Townhouse and Low-Rise Code which has seen townhouse applications boom since it came into effect in March 2025.
Ms Walters adds that in the pivot to focus on townhomes, Nostra Homes has made a point of collaborating with quality developer partners who are building not just homes, but communities with everything buyers need.
Ultimately, Ms Walters says that Nostra Homes is on a mission to shift outdated views about medium-density living.
“We are working on changing the perception that townhomes are not a downgrade and these days are designed just as well as a standalone home,” she says.
Discover Nostra Homes' townhome designs and prices.
Founded in 2006 by a passionate young visionary, Anthony Caruana, Nostra Homes began with a simple dream: to create reliable and beautiful family homes. Anthony’s journey started in Melbourne’s west, where he purchased his first block of land with the goal of building a home to sell—a trusted space for families to thrive. From those humble beginnings, Nostra Homes has grown into a vibrant team dedicated to delivering 400 high-quality homes each year. Our commitment to excellence is at the heart of everything we do, backed by a refined building process honed through years of experience and continuous improvement.
